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Jakarta Post

Short-term pain, long-term gain for RI

  • Hidetoshi Nishimura, Dionisius Narjoko and Fauziah Zen


Jakarta   /   Tue, October 9, 2018   /  11:09 am
Short-term pain, long-term gain for RI For some time, the rupiah has been under pressure from the tightening of US monetary policy. (Antara/Puspa Perwitasari)

Many eyes are on Indonesia, questioning the attractiveness of the country as an investment destination amid significant rupiah depreciation. Is it still smart to put money into the country? Will the country survive the exchange rate depreciation? Or is the country turning towards protectionism? These are some of the questions posed by many Indonesia observers, especially global investors.

The short answer is that there are still many robust medium and longer investment prospects in Indonesia, especially for direct investment. 

The current rupiah depreciation masks the abundant potentials the country offers. The current depreciation of the rupiah is the result of external factors, most notably the increase of United States Federal Reserve interest rates. It is not permanent and should not be the basis for analyzing the prospects of the country. 

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.